Rising Wage Income and the Role of MGNREGA among Agricultural Households in India: Evidence from the Situation Assessment Survey, 2018–19

This paper explores the contribution of wage income to the overall earnings of agricultural households in India. Utilising data from the 2019 “Land and Livestock Holding of Households and Situation Assessment of Agricultural Households” conducted by the Ministry of Statistics and Programme Implementation (MoSPI) in 2018–19, the study offers an in-depth analysis of the proportion of income derived from wages by farmers across various states and landholding sizes. Additionally, the paper investigates the impact of public employment programmes, such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), on rural wages and the income of agricultural households. Findings from the paper point towards increasing landlessness among small and marginal farmers, as they increasingly rely on wages to supplement their livelihood. While a focus on increasing agricultural growth rate by the policymakers may contribute towards farmers’ welfare, policies need to be focused towards increase in non-farm employment. Rural employment programmes help to address the issue of chronic unemployment and alleviate rural poverty. Public investments in the form of irrigation facilities and other rural infrastructure are also required to promote sustained agricultural growth and thereby foster well-being among the rural agricultural households.